How to sell a stock in Robinhood
To sell a stock in Robinhood, open the app, tap the stock you own, tap the sell button (usually a downward arrow or "Sell" text), enter the number of shares you want to sell, choose your order type, and confirm. The entire process takes about one minute. Your cash appears in your Robinhood account when ready after the sale executes, though it may take one to two business days to transfer to your linked bank account.
The key difference from buying is that you are working backward from the price you want to receive, not the price you want to pay. Robinhood shows you the current market price when you start, but you can set conditions on when and at what price your sale actually happens.
Key Takeaways
- Tap the stock name in your portfolio, then tap the sell button, enter your share count, and confirm the order type to sell.
- A market order sells when ready at whatever price the market is offering right now; a limit order waits until the stock reaches a price you set.
- Your cash lands in your Robinhood account the same day the sale executes, but transferring it to your bank takes one to two business days.
- You cannot sell fractional shares in Robinhood unless you own them from a dividend reinvestment or a fractional purchase you made earlier.
- Selling at a loss may reduce your taxes owed that year, but selling at a gain creates a tax bill you will owe when you file.
Opening the stock and tapping sell
Start by opening the Robinhood app and going to your portfolio. This is usually the home screen or a tab labeled "Investing" or "Account." Scroll through your holdings until you find the stock you want to sell, then tap it. The stock detail page opens and shows the current price, your cost basis (what you paid), and your gain or loss.
Near the bottom of the screen, you will see a row of buttons. One says "Sell" or shows a downward arrow. Tap that button. Robinhood then asks how many shares you want to sell. Enter the number. If you own 10 shares and want to sell all of them, type 10. If you want to sell only 5, type 5. Robinhood will not let you enter a number larger than what you own.
Choosing between market and limit orders
After you enter the share count, Robinhood shows you two order types: market and limit. A market order sells your shares right now at the best price available in the market. If the stock is trading at $50, your market order will execute at or very close to $50. Market orders almost always fill when ready during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday).
A limit order lets you set a minimum price. You tell Robinhood, "Sell my shares, but only if the price reaches $52 or higher." If the stock never reaches $52 that day, your order stays open and waits. Limit orders can sit for days or weeks. They expire at the end of the trading day unless you set them to "good till canceled," which keeps them active until you cancel them or they execute.
For most people selling a stock they own outright, a market order is simpler. You get your money when ready and do not have to monitor the price. Use a limit order if you are willing to wait for a specific price or if you want to avoid selling during a temporary dip.
Confirming and tracking your sale
Once you choose your order type and review the details, tap "Confirm" or "Submit Order." Robinhood sends your order to the market. If you placed a market order, it executes within seconds. If you placed a limit order, Robinhood shows you a confirmation screen and the order sits in your "Orders" tab until it fills or you cancel it.
After your sale executes, the cash appears in your Robinhood account balance when ready. You can see this in your account summary. However, the cash is not yet in your bank account. Robinhood holds it for one to two business days before transferring it to the bank account you linked when you signed up. You can transfer it sooner by paying a small fee, but most people wait.
To check the status of a sale, tap the "Orders" tab (usually at the bottom of the screen) and look for your recent transaction. Completed sales show a status of "Filled." Pending limit orders show "Open."
Selling fractional shares and whole shares
Robinhood treats whole shares and fractional shares differently when you sell. If you own 10.5 shares of a stock, you can sell all 10.5 shares in a single order. However, if you are trying to sell only the fractional part (the 0.5), Robinhood may not let you. The app usually requires you to sell fractional shares as part of a larger order that includes whole shares.
Fractional shares come from two sources: dividend reinvestment (when Robinhood automatically buys a partial share with your dividend payout) or a fractional purchase you made yourself. If you own fractional shares and want to sell them, the easiest route is to sell your entire position at once, including the fractional part.
Understanding the tax impact of selling
When you sell a stock for more than you paid for it, you owe capital gains tax on the profit. When you sell for less than you paid, you have a capital loss, which can reduce your tax bill. Robinhood does not collect this tax automatically — you owe it when you file your tax return the following year.
Robinhood tracks your cost basis (the price you paid) and sends you a tax document called a Form 1099-B at the end of the year. This form lists every sale you made and the gain or loss on each one. You report this information on your tax return. If you sold stocks in multiple years, each year's sales go on that year's return.
The timing of your sale matters for taxes. If you held the stock for more than one year before selling, your profit is taxed as a long-term capital gain, which usually has a lower tax rate. If you held it for one year or less, it is taxed as a short-term capital gain, which is taxed like regular income. Robinhood shows you the holding period when you sell, so you can see which category your sale falls into.
Common mistakes when selling stocks
The most common mistake is selling during market hours when you meant to sell after hours, or vice versa. Market hours are 9:30 a.m. to 4 p.m. Eastern, Monday through Friday. Outside those hours, the market is closed and your order will not execute until the next market open. If you place a market order after 4 p.m. on a Friday, it will not sell until Monday morning, and the price may be very different.
Another mistake is setting a limit order price too high and then forgetting about it. If you set a limit order to sell at $60 but the stock never reaches $60, your order sits open indefinitely (unless you set it to expire at the end of the day). Check your "Orders" tab regularly to see if your limit order is still pending, and cancel it if you change your mind.
A third mistake is selling all your shares when you meant to sell only some. Robinhood asks you to confirm the number of shares, so read carefully before you tap confirm. There is no undo button once the order executes, though you can buy the shares back when ready if you realize the mistake right away.
Frequently Asked Questions
How long does it take for my cash to reach my bank account after I sell?
Your cash appears in your Robinhood account balance when ready after the sale executes. Transferring it to your linked bank account takes one to two business days. Weekends and holidays do not count as business days, so a sale on Friday may not reach your bank until Tuesday.
Can I sell a stock after market hours?
Yes, but your order will not execute until the market opens the next day. If you place a market order after 4 p.m. Eastern, Robinhood queues it for the next market open (9:30 a.m. the next trading day). The price may be very different by then. Limit orders placed after hours also wait until the market opens.
What happens if I sell a stock and then buy it back the same day?
Robinhood allows this, but it counts as a day trade if you do it frequently. If you make more than three day trades in five business days, Robinhood flags your account as a pattern day trader and requires you to maintain a $25,000 minimum balance. This rule comes from the Securities and Exchange Commission, not Robinhood.
Do I have to pay taxes on the sale right away?
No. You owe taxes when you file your return the following year. Robinhood sends you a Form 1099-B in January or February listing all your sales from the previous year. You use this form to report your gains and losses on your tax return.
Can I cancel a sale after I confirm it?
If you placed a market order, it executes within seconds and cannot be canceled. If you placed a limit order that has not filled yet, you can cancel it by going to your "Orders" tab, finding the pending order, and tapping "Cancel." Once a limit order fills, it cannot be canceled.